The _____ effect indicates that an individual's income can buy more of all goods when the price of one good declines, everything else held constant
a. scale
b. endowment
c. substitution
d. price
e. income
e
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In the figure above, curve B is the ________ curve
A) average fixed cost B) average variable cost C) average total cost D) marginal cost
Featherbedding allows unions to increase wages by:
a. limiting the supply of labor. b. increasing firms' demand for labor. c. forcing firms to accept higher-than-equilibrium wages. d. reducing labor share of payroll taxes.
Throughout history, governments have used price controls to
a. protect buyers. b. protect sellers. c. serve the "public interest." d. All of the above are correct.
Say a firm that sells its product at a price of $40 is using 20 units of capital. If the marginal product of the last unit of capital used was 50, and the constant rental rate of capital is $2,000, then this firm should
A. continue to use same units of capital. B. acquire more capital. C. decrease its output. D. decrease the amount of capital.